St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1887-04-29
THE PACIFIC ROADS INQUIR,
President Adams on the Stand-
What He Knows of the Situa
ton.

What He Knows of the Situa.
ton.
New YORK, April 2S.-The inquisition
''into the working and financial manage
ment OF all the railroads that have received
aid from the government in bondsn was re-
sumed to'day by the commission appointed
by President Cleveland. Ex-Governor
Patterson presided and Commissioner
Ellery Anderson acted as inquisitor.
Charles Francis Adams occupied the wit
ness chair. Commissioner David Litter
was not present. Mr. Adams said he had
been president of the Union Pacific road
three years, and knew great deal of the
road and its management and working
during his presidency, but knew almost
nothing about it prior to that time. 1t
was not his business to look into the his
tory OF the roads. but to post himself on the
consolidated road. He had heard vague
stories that Directors Gould, Sidney Dillon
and +. l.. Ames had SO conducted affairs
that they were i'll debt to the company.
Mr.. Adams had investigated these charges,
but he was rot permitted to state his con-
illusions. Mr. Adams looked into the Ne
vada. the Omaha Valley and all of the
branches OF the Union Pacific. 1t was
general examination. Each of them has
separate organization. The Union Pacific
consolidated is composed OF the Kansas Pa
chic, the Denver Pacific and the Old Union
Pacific. He did not suppose the road
proper had the power to build mile of
branch track under that charter. He is
supposed to be president of the branches.
The construction department of the Union
Pacific had charge of the construction of
these branches. They let the work to the
lowest bidder. Mr. Adams said that Mr..
Brinnskdorfer, who had much to do with
the original construction of the old road
and who now lives at Omaha, was a man
OF experience and had these contracts. He
knew all about them and could explain
everything. The Nevada Central branch
was taken up next. This road is ninety
miles long and it was built on the expecta-
ton of the development of Nevada. 1t
was acquired by the Union Pacific in 1881
or 1882, and about the first thing Mr.. Adams
did as president was to throw this branch
overheard. as he could see no futute for it.
Perhaps Stokes & Co., of this city, fur
nished the capital to build that road, and
when it was bought by the Union Pacific
its cost price was charged to the expense
account. Onr experience with it was
similar to that of many mining railroads
While the mines last they are exceedingly
profitable. When they give out you have
dead road on your hands. The Conn
stock road is a brilliant example. 1t was
one OF the most profitable roads in the
country for some years and its future
looked brilliant, but the mines gave out and
then it fell fiat.
The branch system of the Union Pacific
has been elaborated at an enormous eX-
pense, and every dollar of that money
might just as we'll have been paid into the
pockets of the stockholders III dividends.
The branches of the road were paying, so
it would seem, for while they made deficits
it was a fact that they fed the main line
with business OH which large profits We're
made. Mr.. Adams had calculated that the
Union Pacific was receiving about So 00O,
600 from its branches. The company had
gone into outside enterprises not always
successful. The attempt to develop
Gen. Sickles' discovery for instance
was failure. The Occidental
Steamship company was paying. 1t was
introduced by the Central Pacific and was
Joined in by the Union Pacific. The road
was driven into schemes to develop this or
that industry by the press and people. They
clamored and cried that the road was not
enterprsing, and was ungrateful if it did
not go into these schemes. Replying to
question of EX-Gov. PattiSon, MI Adams
said that he did not know an instance where
a director officer or employe of the Unio4
Pacific had had any interest in any contract
with the Union Pacific. The last dividend
of the road was declared in March, 1884.
The net earnings of the road for the past
three years had been devoted to improving
the property. The floating debt touched
its highest point July 1. 1884. 1t was then
81. 500. 900. Adjourned.